Udrive expands into Saudi Arabia
Udrive, a pay-per-minute and daily car rental platform, has expanded into Saudi Arabia to serve its widening customer base, gearing the company for triple-digit-percentage growth and accelerated profitability in the Gulf region over the next 12 months. The new operations are being set in line with the increasing demand from residents, tourists, students and startups in the kingdom for greater choices and convenience in mobility at affordable prices.
Udrive will first launch in the Saudi capital city of Riyadh. With the city's population forecast to nearly double this decade, from 7.2 million to 15 million by 2030, Riyadh has been identified as a strong market for short- and long-term car leasing and rentals. The average percentage ratio of car sharing cars to passenger cars in Riyadh is 0.02 percent compared to a global average of 0.5 percent in major cities, presenting a significant opportunity.
The traditional car rental market in KSA is valued at approximately US$1 billion and forecast to reach $1.18 billion by 2026. Udrive's shared mobility model supports Saudi's Vision 2030 for greener mobility. Nine out of 10 people (92 percent) in Saudi Arabia currently use a privately owned vehicle to go to work or school, leading to reduced air quality, significant traffic congestion and decreased urban liveability.
Nicholas Watson, Co-founder and CEO of Udrive said: “We are delighted to expand our footprint to serve the thriving Saudi market. The sustainability pillar of Saudi Arabia’s ambitious Vision 2030 strategy presents a compelling case for us to expand into the region. We believe our car sharing model will reduce commuting costs for residents, tourists, students and startups while supporting the nation’s long term development goals by reducing vehicle emissions and decreasing pressure on infrastructure.”
Udrive also plans to roll out fleets in Jeddah and other KSA cities in 2023, boosting its fleet to 1,500 cars in a year. The car-sharing platform's operations in KSA will also provide a boost to the local economy, creating jobs and mobilizing communities of people who would normally find it expensive or risky to rent a car with deposits by enabling easy access to usage of cars.
Watson added that there is also a growing passenger car market among a population where more than half are under 25, that is moving from ownership to usership. “This makes the country the ideal launchpad for our first operations outside our UAE home base.”
The global car sharing market is projected to expand at a CAGR of 25 percent through 2022 and grow at 34.8 percent year-over-year between now and 2024, when it will total $16.5 billion.
